1.   The private warehouse shall be surrounded with a fence at all sides, and shall have special entrances and gates which are supervised by the customs.

2.   The private warehouse shall have adequate areas and facilities to allow for customs procedures to be completed.

3.   The private warehouse shall meet the necessary security requirements.

4.   The private warehouse shall be fitted with all services, equipment and general safety requirements.

5.   The private warehouse shall be specially equipped to accommodate goods of special nature (i.e. to be fitted with cooling systems if the goods need to be refrigerated, etc.).

6.   The customs office to supervise the warehouse shall be designated.

7.   At the request of the of the owner of the private warehouse and subject to the approval of the customs, the warehouse may be expanded or altered by increasing or removing some of the installations therein, provided the respective above controls shall be observed.

8.   Prior to commencement of work, the owner of the private warehouse shall submit a cash security or bank guarantee covering the customs taxes ‘duties’ and any other allowances , services or fines, if any, applicable to the goods deposited in the private warehouse. The customs office will determine the amount of such cash security or bank guarantee based on the value of the goods in the warehouse.  

9.   Goods that may not be deposited with the private warehouses:

a.   Prohibited goods notified in relevant lists.

b.   Explosives, arms, ammunition and similar materials, unless the warehouse is licensed to keep them by the competent authorities.

c.   Radioactive substances.

d.     Internationally or locally prohibited goods or those subject to international agreements and conventions and local laws in force, as well as imitated and counterfeited goods or those not conforming to applicable standards or IPRs, may not be deposited with the warehouses.

e.   All kinds of narcotics.

f.   Goods originated in countries economically boycotted.

g.   Goods in bulk state, unless the warehouse is designed for kind of goods.

h.   Damaged, corrupt or expired goods.

i.   Any other goods as determined by the customs administration.

10.   Subject to the provisions of paragraph (h) above, goods deposited with the private warehouses shall be allowed to remain therein for a period of 365 days, to be renewable for similar periods not to exceed three years. The payable customs duties shall be paid upon expiry of that period. 

11.   The competent customs authority shall have the right to examine the goods according to the provisions of the GCC Common customs Law.

12.   The goods that leave the warehouse designating any of the GCC Sates shall be cleared at the competent customs authority, subject to applicable customs duties and to all customs procedures and instructions in force in that State in implementation of the principle of the single point of entry.

13.   Should a discrepancy be found between the goods deposited in the warehouse and those described in the customs declaration and the attached documents, a report is to be signed by the owner of the warehouse or his representative or the authorized customs broker and the competent customs officer. Such report shall be forwarded to the director of the competent customs office to take necessary actions accordingly.

14.   The competent customs officers shall have the right to access the warehouse for performing their duties and may request the owner of the warehouse to relocate the goods within the warehouse or rearrange them if necessary.

15.   Customs clearance shall be permitted for the goods stored in the private warehouse under proper customs declarations and for all customs procedures according to the provisions of the GCC Common Customs Law.

16.   Imported goods may be split in partial shipments provided such splitting does not cause loss of customs revenues.

17.   The owner of private warehouse or his legal representative, subject to the approval of the Director of the Customs office, shall have the right to arrange, sort or pack the goods or carry out any other necessary action to keep them and render them ready for sale, provided such measures do not cause loss of customs revenues.

18.   Goods that may be kept in the warehouse are only those belonging to the owner of the warehouse.

19.   In the event the goods are not taken out from the warehouses within the specified time, they shall be subject to the provisions of the GCC Common Customs Law and the relevant instructions issued in this respect.

20.   Goods that are abandoned by the owner in writing, subject to the approval of the customs office, may be sold in auction according to the provisions of the GCC Common Customs Law and the relevant instructions issued in this respect.

21.   The owner of the warehouse shall submit a list of the goods whose deposit period has expired.

22.   The owner of the private warehouse or his legal representative may access the warehouses to examine his goods in presence of the competent customs officer.

23.   The owner of the private warehouse shall have the right to take samples of the goods when necessary, subject to the approval and supervision of the customs office, provided they are cleared under applicable customs procedures.

24.   Should a damage is caused to the goods, after the goods have entered the warehouse, due to negligence or default by the owner of private warehouse or his legal representative, the customs duties shall be levied on the goods from the date of they have entered the warehouse, provided the goods shall be disposed with according to the provisions of the GCC Common Customs Law.

25.   Subject to the provisions of customs smuggling, if the goods in the warehouse are lost for whatsoever reason, the owner of the private warehouse shall pay the customs duties in full, as well as the other costs, expenses, service fees and fines according to the provisions of the GCC Common Customs Law.

26.   The Director General or the director of the licensing department, may suspend, cancel or re-license the warehouse that was previously licensed, according to the provisions of the GCC Common Customs Law.

27.   Should the goods be damaged, the owner of the goods, his representative or the authorized customs broker may ask the customs office to finalize the respective customs procedures based on the value of goods in the state at the time of registering the customs declaration according to Article (18) of the Common Customs Law. A committee composed of representatives of the customs office, a customs valuation specialist, the investor or the owner of the goods is to be formed in order to record the fact and identify the damage percentage, then to determine the value of the goods according to Article (61) of the Common Customs Law. However, if a customs declaration was previously registered, relevant procedures shall be completed as stated in the customs declaration. Such procedure applies to the goods existing in the customs area, the warehouses or any other place under customs supervision.

28.   The owner of the private warehouse shall pay the licensing fees and the annual licensing fees as determined by the customs office.